Read 3708 times

  • sass
  • Veteran

    • 78

    • August 19, 2009, 01:57:00 pm
    • Korea
Best to leave pension money or withdraw?
« on: November 10, 2014, 08:47:08 pm »
I've been here for a few years and my pension fund is a decent size. I can't figure out if the interest rate on the pension starts immediately or not? Is it better for me to withdraw my pension and put it into a bank account with a high rate of interest? I'll only be in Korea for another couple years but I'm curious if it's smarter to withdraw it so I can collect more interest.

Also, I remember reading ages ago that there is a limit on the number of times you can refund your pension? I think this is false but just wanted to double check.


  • madison79
  • Hero of Waygookistan

    • 1378

    • October 19, 2010, 01:26:04 pm
    • Interweb
Re: Best to leave pension money or withdraw?
« Reply #1 on: November 10, 2014, 09:03:54 pm »
I could be wrong but I heard you can only cash out so many times.  Anyone confirm it?
It's -ev to deal with some people.


Re: Best to leave pension money or withdraw?
« Reply #2 on: November 10, 2014, 09:17:45 pm »
I've been here for a few years and my pension fund is a decent size. I can't figure out if the interest rate on the pension starts immediately or not? Is it better for me to withdraw my pension and put it into a bank account with a high rate of interest? I'll only be in Korea for another couple years but I'm curious if it's smarter to withdraw it so I can collect more interest.

Also, I remember reading ages ago that there is a limit on the number of times you can refund your pension? I think this is false but just wanted to double check.

I assume you'll be in between contracts/working visas when you plan to withdraw it? That's the only time you can, I believe--when you've got proof that your employment and working visa have wrapped up and you've got a one-way ticket out of the country.


  • sass
  • Veteran

    • 78

    • August 19, 2009, 01:57:00 pm
    • Korea
Re: Best to leave pension money or withdraw?
« Reply #3 on: November 11, 2014, 09:06:32 am »
I've been here for a few years and my pension fund is a decent size. I can't figure out if the interest rate on the pension starts immediately or not? Is it better for me to withdraw my pension and put it into a bank account with a high rate of interest? I'll only be in Korea for another couple years but I'm curious if it's smarter to withdraw it so I can collect more interest.

Also, I remember reading ages ago that there is a limit on the number of times you can refund your pension? I think this is false but just wanted to double check.

I assume you'll be in between contracts/working visas when you plan to withdraw it? That's the only time you can, I believe--when you've got proof that your employment and working visa have wrapped up and you've got a one-way ticket out of the country.

Yes, I'll be doing a bit of traveling this year so I could withdraw it. Just curious if it's worth it or if I should just leave it be.


  • Jgrat
  • Super Waygook

    • 486

    • May 16, 2011, 06:14:29 am
    • Siheung
Re: Best to leave pension money or withdraw?
« Reply #4 on: November 11, 2014, 11:10:48 am »
It's a difficult question because it depends on a number of factors.
What is your nationality?
How many years do you have banked?
Do you currently invest in something that could possibly give you a higher return on that money?
Do you intend on collecting a national pension from your passport country?

Depending on your nationality it might make more sense to leave any time you have banked in the Korean National Pension there because it counts as a credit towards your national pension from home.

For example: Canadians are entitled to CPP, OAS and GIS even if they have worked and paid into the national pension scheme of a reciprocating country. Therefore, Korean pension credits count as Canadian pension credits for all three national pension and old age benefits.

I believe the Australians and Kiwis have a similar arrangement and similar generous pensions schemes.

From what I've heard American Social Security is .... crap, so that would have to be a judgment call if you're American.



  • climber
  • Super Waygook

    • 270

    • January 02, 2011, 06:52:36 pm
    • Ilsan
Re: Best to leave pension money or withdraw?
« Reply #5 on: November 11, 2014, 12:36:10 pm »
I would take it and run before they change their mind and decide to keep it. I just don't trust the Korean government with my money. I have over four years of money in the pension and I am hoping to any god that might be out there that they don't change the rules this January.


  • Ley_Druid
  • The Legend

    • 2468

    • February 17, 2011, 08:36:33 am
    • Shinan-Gun, Jeollanam-Do, South Korea
Re: Best to leave pension money or withdraw?
« Reply #6 on: November 11, 2014, 03:01:20 pm »
If you are married to a Korean, there are some really good savings accounts that you can put it into. Otherwise, you might be best leaving it where it is, because the interest collects with every deposit, or so I have been told. Not exactly sure, but I was told that it is better than an average bank account, but I can't be sure either. Hmm... I am sure that I am unsure. I hope you sure got that.

But if you are married to a Korean, there are some good savings accounts out there.


  • country09
  • Expert Waygook

    • 653

    • January 05, 2011, 10:04:21 am
Re: Best to leave pension money or withdraw?
« Reply #7 on: November 11, 2014, 03:20:41 pm »
If you are married to a Korean, there are some really good savings accounts that you can put it into. Otherwise, you might be best leaving it where it is, because the interest collects with every deposit, or so I have been told. Not exactly sure, but I was told that it is better than an average bank account, but I can't be sure either. Hmm... I am sure that I am unsure. I hope you sure got that.

But if you are married to a Korean, there are some good savings accounts out there.

I am sure that you are sure about being unsure if you are sure.

Multicultural family interest rates are higher than normal Korean family interest rates.
I know because my wife and I have quite a few opened with different banks.

Taking money out to transfer back to your home country to invest really needs to be done carefully. Study the trends of your currency against the WON. It would really suck for you to take out a 'large sum' only to find out a month or two later the rate has gone down by 50 won.


  • madison79
  • Hero of Waygookistan

    • 1378

    • October 19, 2010, 01:26:04 pm
    • Interweb
Re: Best to leave pension money or withdraw?
« Reply #8 on: November 11, 2014, 03:24:49 pm »
I would take it and run before they change their mind and decide to keep it. I just don't trust the Korean government with my money. I have over four years of money in the pension and I am hoping to any god that might be out there that they don't change the rules this January.

I've been here for 7 years and took out 10K 2 years ago.  Had no problem with it.  Money was in my US account 2 weeks after I left Korea.
It's -ev to deal with some people.


  • sass
  • Veteran

    • 78

    • August 19, 2009, 01:57:00 pm
    • Korea
Re: Best to leave pension money or withdraw?
« Reply #9 on: November 11, 2014, 04:28:29 pm »
Thanks for the thoughtful replies. I'm Canadian but didn't know about the reciprocating countries pension situation. To be honest, I'm not sure if I understand how that works. I will definitely do some research about that.

The exchange rate is pretty bad right now for Canadians so I had hoped to get the money sent to my Korean bank account. Now that I think about it, I'm not sure if that's even possible? My idea was to wait the rate improved but in the mean time try to open a high interest bank account. I'd seen some that were open to foreigners and seemed good if you had a decent chunk of money. I guess I'll have to call NPS and find out more about their interest rates.


  • Jgrat
  • Super Waygook

    • 486

    • May 16, 2011, 06:14:29 am
    • Siheung
Re: Best to leave pension money or withdraw?
« Reply #10 on: November 11, 2014, 04:55:32 pm »
http://www.servicecanada.gc.ca/eng/services/pensions/international/countries/korea.shtml
The info might seem confusing but in short. Working in Korea and your contributions to the Korean pension system are seen as on par to the Canadian system. Assuming you get 40 years of contribution time into either of the systems it makes you eligible for full benefits. Any time lower than the 40 years on CPP or OAS means you will receive benefits for those years only. However, you can deduct your lowest earning 8 years to average out a higher benefit. If you are still under the income cutoff point for GIS you will also receive GIS. If your total income exceeds $69000 a year the OAS clawback takes effect.

In other words you pay less into the Korean system BUT you are still entitled to the whole Canadian social package as long as you put in the time and live in Canada 10 years before you apply for pension.